8 Jan 2015

Warning petrol prices could skyrocket again

12:57 pm on 8 January 2015

An oil analyst is warning that while fuel prices are cheap now, they could skyrocket to new highs over time.

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Photo: RNZ

Ninety one octane petrol dropped by two cents and was now selling for $1.839 a litre at most petrol stations.

Oil analyst at Standard Chartered in London Paul Horsnell said while the low prices were good short-term relief for consumers, a lack of investment in the oil industry would hurt consumers in the long term.

Mr Horsnell said the price was too low and what eventually could happen was a series of continual price rises, similar to what happened over the past decade.

"My concern is that this feels a bit too low, it feels like too-good-a-deal in the long run."

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